CIL may import non-coking coal for first time

With the Centre revising the coal import target from 25 million tonnes (mt) to 35 mt for 2009-’10 to meet the growing requirements of the power companies, Coal India Limited (CIL) has got its act together by planning to set up an import cell to import coal on its own.

CIL aims to import 4 mt of non-coking coal this fiscal for the first time since its inception mainly to meet the demands of power-generating firms in the country. It may be noted that 4 mt of imported coal would be equivalent to 6 mt of coal produced in the country as the calorific value of imported coal was about 50 per cent higher than domestic coal.

“We will set up an in-house import cell soon which will work out the modalities for the import of non-coking coal. CIL aims to import 4 mt of non-coking coal in 2009-’10 which is the target given to us by the Planning Commission,” Partha S Bhattacharyya, chairman, CIL told Business Standard.

The overseas destinations from which CIL would import non-coking coal would hinge on the specifications of coal for our consumers, he said.

In 2008-’09, the country imported about 18 mt of coal as against the target of 20 mt of imports. National Thermal Power Corporation (NTPC), the country’s largest power producer, which planned to add around 3,000 Mw power this fiscal aimed to import 12.5 mt of coal this fiscal compared to 8.2 mt which it imported in 2008-’09.

CIL would provide 312 mt of coal to power utilities this fiscal, compared to 292 mt which the navratna coal PSU provided in 2008-09.

CIL had recorded a 6.4 per cent growth in its coal output of about 400 mt in 2008-09 and it expects a 7 per cent growth this fiscal. The coal PSU’s production was projected around 520 mt by 2012. But, the demand for coal in the county would reach 730 mt by then, thereby creating a shortfall of over 200 mt.

Bhattacharyya pointed out, in the long run, about 50 per cent of the coal production needed to come from the captive coal blocks to meet the country’s burgeoning coal requirement.

About 190 captive coal blocks have already been allotted for captive coal production with an estimated reserve of about 40 billion tonnes.

On the supply side, CIL was looking to clear its pithead inventory and streamline coal movement by asking its eight subsidiaries to come up with month-wise rake requirement list.

The CIL subsidiaries were expected to come out with their respective rake requirement list soon, following which the coal PSU was to take up the issue of rake requirements with the Railways.

CIL would take up the issue of rake allotment soon at a review meeting with the Railways and we expect to tide over the problem of rake allotment in this fiscal, claimed Bhattacharyya.

Owing to inadequate rakes, CIL’s stockpile at the pitheads of all its subsidiaries has gone up to about 43 million tonnes by the end of 2008-09.

During the last quarter of any fiscal (January-March) when CIL’s coal production reaches its peak, it needs 192 rakes per day for securing coal offtake.